7th Apr 2014 07:59
LONDON (Alliance News) - Good Energy Group PLC Monday said its pretax profit more than doubled in 2013 as higher expenses and finance costs were offset by a strong increase in revenues.
The AIM-listed UK renewable electricity supplier said its pretax profit increased to GBP3.3 million in 2013 from GBP1.4 million in 2012, as revenues jumped 43% to GBP40.4 million from GBP28.2 million.
The company, which is investing to own more than 110 megawatts of renewable electricity generation in the UK by 2016, said its revenues increased as its electricity customer base grew by 25% to 40,000 and its gas customer base jumped by 76% to 15,000 people.
Good Energy said growth was driven by its competitive pricing, renewables-only electricity generation, and strong customer service. It said its introduction of a new trading platform, diversification of its supply base, and investment in group owned-and-operated energy assets has delivered improvements in energy price stability, reduced the company's power costs, and improved its margins.
"The company has exceeded market forecasts, improved its margins, expanded generating capacity and maintained its focus on customer service," Chief Executive Juliet Davenport said in a statement.
The company recommended a 15% increased final dividend of 2.3 pence from 2.0 pence the previous year, which increased its full year dividend 10% to 3.3 pence from 3.0 pence.
Good Energy noted its administrative expenses increased to GBP9.7 million from GBP7.5 million, as it increased investment to deal with its growth in customer numbers.
The company announced in February that it would raise its electricity and gas prices starting April 2, although it said that its prices will still be cheaper than tariffs offered by the big six energy suppliers.
Good Energy said at the time that the average dual fuel bill would rise by 2.2% to GBP1,199 a year from GBP1,173, which it said was broadly in line with inflation.
The company said that a reduction in average power costs and a good performance from its Delabole Wind Farm had been offset by expenditure required to meet the UK's Retail Market Reform regulations and costs associated with renewable energy and smart metering programmes.
The firm said on Monday that it expects further growth in the current year, as customers continue to move towards cleaner and more competitively-priced sources of heat and power, and noted that it is ahead of its plan to implement a two-year investment programme focused on generating its targeted level of renewable electricity capacity by 2016.
Good Energy shares were up 7.4% to 290.10 pence in early trading Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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